COMPANY’S MARKETING STRATEGY 1
Running head: COMPANY’S MARKETING STRATEGY
Individual Assignment: Company’s Marketing Strategy: An Analysis of AT&T
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Company’s Marketing Strategy: An Analysis of AT&T
Nowadays the need for the marketing and the marketing trends are changing at a very rapid speed. Similarly AT&T also places too much importance to the fact that a critical market plan is very much required in order to survive. It is also well accustomed that new and advanced marketing practices which are more effective and efficient are very much required. AT&T tries to build a relationship with the customers where it makes the efforts that it can get more and more customers and can retain them by providing them with their loyalty and satisfying their needs and requirements. For this purpose it adopts effective marketing practices. AT&T believes in technological advancement and constant improvement and this is done through the products of AT&T. in order to compete in the market it includes comparable functions which make its products better than the others. According to AT&Twebsite the company tends to have a strong brand presence and standing. According to the corporate profile in regard to telecommunications industry the company is considered to be very reputable. It is making efforts to continuegrowing on a global scale. Since there has been elevated penetration pertaining tocellular users AT&T has advantage to its marketing. Emerging markets like ChinaandIndia have given opportunities to penetrate in the markets as there are incredible growth potentials. According to Bao and Sweeney (2009) as the recession in developed countries is creating problems in the path of the growth of AT&T, it is looking for new markets. AT&T Website, Corporate Profile states despite of the fact that AT&T already has a large market on handAT&T’s existing customers are still looking for innovation on a continuous basis. To make this possible AT&T has to continuously meet their requirements and efforts are made to exceed these requirements. It also takes the advantage of pre-established economies of scale.
Usually the products and services offered by AT&T are used by adults specially the ones who are socially active, are familiar to innovative technology and are involved in large business activities. Since these products and services are not affordable by everyone AT&T focus on the countries who provide their citizens the opportunity and liberty to utilize the luxury and convenience offered by AT&T’s products and services. For this purpose the main area or region of attention for AT&T is still nations such as Asia, the United States, and Europe. The target market of AT&T holds a high lifestyle, having a higher level of disposable income which allowsbuying and usingsuch products and services. These are the people who are usually involved in more than one business or tasks and require an advanced technology to be quick and which can aid them in fulfilling their tasks. According to AT&T’s Website the interest pertaining to actual technology requirements for its mobile devices is less than theattentionpertaining tothe kinds of service options and plans that AT&Toffers. The target customer will go for another device only when it’ll offer better features and functions and also there is a prominent fact about the price. There are customers who will not spend too much many and are economical. They tend to be limited in regard to their utilization and spending and avoid making unnecessary payments or expenditures. Therefore the target market for customers who are not in a need for advanced technology would not spend a large amount on a technological advanced mobile devise. These customers would not even have theneed for advanced features such as Internet.
In order to be competitive the company believes in promoting its advanced features of its products and services. It is the strategy of AT&T to highlight its different and more advanced features in order to gain the competitive edge over the others. The capabilities of the organization are considered to be important in regard tothe accessibility of Internet browsing and extraordinary service and support. One of its strategies is to make sure that the customers are not affected by the price of its product and it is in accordance toits specific markets. Furthermore the marketing strategies, especially related to the overall budget, determinesthe percentage of its total revenues from its available resourcesthat is can allocate. Efforts are made by the organization to be accurate and well aware of its expenditures,including employees, marketing, accounting, sales support, etc. The budget allocation for marketing is based on the market(s) AT&T is entering or will enter. Keeping in view the market to be penetrated, AT&T develops its products and services. Furthermore it analysis the buying habits of its target market and then plan its advertising and promotional campaign accordingly. According to Vorhies, Morgan & Autry (2009) in addition to marketing planning and product development AT&T allocate a specific budget for market analysis, need analysis and a price sensitivity analysis. For this purpose resources are decided and efforts are made to figure outwho actually wants the products and services, which actually requires the products and services, who will be the buyer and what is he willing to spend.
The main objective of the pricing is to bring a positive increase in regard to long-term revenue. Secondly it tries to maximize the overall profitability by enlargingits share of the market. According to Graham (2009) this process of penetration pricing has been effectivedue to the fact that there are a sufficientamount of recognizable and successful brand names in the industry. According to Vorhies et al, (2009) in order to prove its value proposition to prospective customers, AT&T would need to first gain the confidence of its markets. This will also help in entering new markets, simultaneously trying to get rid of existing companiesthat have competitive pricing. Graham (2009) states that AT&T can charge premium prices when consumers recognize the value proposition of products and services.Because of its low initial entry prices AT&T has been successful to gain market acceptance through the elimination of its competition’scustomer loyalty. This also results in increased sales volume and a larger market share.
This is a fact that there are a number of products and services having similar features such as AT&T’s, therefore the organization highly needs to integrate effective ideas and concepts. The requirements and needs of the customers are constantly evaluated. Similarly research in regard to telecommunication industry pertaining to trends and demands is continuously conducted.To have a competitive edge efforts are constantly required for AT&T to differentiate its products and services from the organization’scompetitors.
As far as marketing mix is concerned AT&T’s marketing mix is made up of its product, price, place, and promotion. First talking about its product AT&Tfocuses basically on the quality, design, variety, featurescapacities, service, sizes, and warranties. When it comes to price the factors like contract periods, discounts and credits are considered by AT&T. these prices are set in accordance to the costs including the marketing and distribution costs as well as a certain profit margin. The products of AT&T can be purchased both online and as well as the stores. According to Bao & Sweeney (2009) when a target market can have an easy approach to the products and servicesand includes all fitting channels that final destination becomes the place in the marketing mix. In regard to price and placement, a political analysis is conducted by AT&T. This analysis includes variables such asvision of leadership, the government’s stability, governmental policies and procedures, corruption levels. According to Bao and Sweeney (2009) the economic environment in which AT&Tworks in is constantly being evaluated. Furthermore the evaluation is also conducted in regard to economic structure, economic standing, economic policies, economic planning,and the rate and growth of the GDP, disposable personal income, per capita income, etc. As far as promotion is concerned AT&T’s promotion is made up of disseminating AT&T’s datapertaining to its products and services and general brand.With the help of effective public relations efforts are made by AT&Tto practiceadvertising. Personal selling is also done in addition at its numerous stores through direct marketing, and sales promotions. Print and e-media is also used for the purpose of advertisement. Ads are placed in well known magazines, newspapers. Information and attraction is provided to the customers through the commercials on TV or radio (AT&T Website: Innovation, n.d.). a continuous effort is made when it comes to the technological advancement. Keeping in view the competition technological factors are additionally considered, therate ofmodifications within its new products and innovative technology are never ignored. As per AT&T Website, Innovation, extra cost is incurred in acquiring technology, and research and development. Thus the bases of these strategies are the capacity of AT&T, its competition, government regulations and its competition.
A social analysis is done by AT&T and utilized within marketing initiatives in orderto offer the organization the beliefs and values of its consumers within its target market. This data is received by considering the patterns and trends purchasing behaviors and practices and it is directly related to its market. According to Vorhies, Morgan and Autry (2009) this analysis includes the markets’ culture,religion, living standards, and income. In order to target its potential buyers AT&T needs to have such knowledge.
When it comes to the organizational behavior or the culture of the organization AT&T is very successful. The organizational culture is very responsive. According to the Corporate Profile (AT&T Website) efforts are made to provide a healthy working environment for the employees so that they can give a better output and feel satisfied. This culture is apparent within the organization’sinternal and public communications. An equal opportunity is given to all employees to excel and show their best. This enhances creativity and originality. Here the customers are not only considered to be very important rather the employees are given the same respect and attention so that they feel themselves as part of the company and like this their morale is boosted. This type of culture enhances the ability of the employees to learn and grow more and more.
Thus AT&T in order to gain a competitive edge and to get a strong position in the market tends to place a strong emphasis within its marketing practices. Furthermore the company believes that possessing a triumphant marketing plan is critical in order to survive. A strong brand presence is created by promoting its marketing strategies. The organization is constantly attaining and retainingconsumers, promoting its brand, and pushing for consumer loyalty.
References
AT&T Website: Corporate Profile. (n.d.). Retrieved November 10, 2009, from
AT&T Website: Innovation. (n.d.). Innovation. Retrieved November 10, 2009, from
Bao, J., & Sweeney, J. (2009, October). Comparing factor analytical and circumplex models of brand personality in brand positioning. Psychology & Marketing, 26(10), 927-949. Retrieved November 10, 2009, from Business Source Premier database.
Graham, J. (2009). Put Your Marketing to the Test: Making Sure You Have What You Need to Grow. American Salesman, 54(11), 18-23. Retrieved from Business Source Premier database.
Vorhies, D., Morgan, R., & Autry, C. (2009). Product-market strategy and the marketing capabilities of the firm: impact on market effectiveness and cash flow performance. Strategic Management Journal, 30(12), 1310-1334. Retrieved from Business Source Premier database.